The Internationalization of Corporate R&D

THE INTERNATIONALIZATION OF CORPORATE R&Dqualified researchers. Clusters combining front-line research with clinical expertise arethe most attractive (Nilsson). In Japan, for example, the aging population – and theresulting lack of skilled researchers and engineers – drives Japanese multinationalcompanies to seek foreign locations for R&D (Nakazato & Hausman).As noted in our study, existing innovation systems often have systematic and self-reinforcinglock-in characteristics. This means that the technology specialization in thesystem changes only gradually. As a result, national innovation systems evolve moreslowly than the technology needs of multinational companies (Johansson & Lööf)....and is facilitated by technology, people and new actors.An important enabler for any type of geographically distributed collaboration, includingR&D, has been the development of global information and communications networks.Researchers and engineers at different locations can work around the clock as one integratedand global “virtual” team. In addition, innovation processes have become moremodularized, allowing for different tasks to be performed at different locations (Karlsson).Another factor stimulating the internationalization of corporate R&D is the presence oflarge groups of highly-skilled and motivated immigrants in certain technology-intensiveregions in the world. People are attracted to these regions because of the accessthey provide to high-quality education, research and business opportunities. Immigrantsfrom India and China, for example, are important players in the internationalization ofthe Silicon Valley region (Jonsson-Franchi, Mitra).New intermediary players, most of them U.S.-based, are emerging on the global R&Dmarket. Their business idea is to help companies solve specific problems and find technologiesby employing their networks with global reach. As an example, a company canreduce cost and time by posting a specific research problem in an open marketplace forproblem-solving, and then have researchers and engineers worldwide compete to providethe solution. These markets will never replace significant components of the innovationprocess, but do offer companies a cost-effective alternative to in-house R&D, as well asthe option to source globally for technologies and talent for specific tasks (Ohlin).International R&D is becoming more advanced...International activities of multinational companies are moving up the value chain. Itmay begin with basic support for manufacturing and move up to development, technologydesign and even research, (e.g. telecommunication manufacturing companies inChina). Or it may start with the offshoring (re-location) of low-end services and moveto more advanced development and design services, (e.g. software companies andknowledge process outsourcing in India) (Karlsson, Mitra).311